The ESR real estate logistics platform leased 9 square meters of storage space for Amazon India at its upcoming 74-acre e-tailer facility in Sohna, Gurugram, two people with direct knowledge of the deal said.
In January, ESR acquired 76.84 acres to construct a logistics park with 2.5 million square feet of storage space.
The facility will be ready early next year and most of the pre-leases have been finalized. ESR is also in talks with other e-commerce players to rent the remaining space, ”said one person, who did not want to be identified.
ESR declined to comment on the deal.
Warehouses in the National Capital Region (NCR) experienced vacancy levels of 13.9%, compared to other markets such as Bengaluru and Pune, which have vacancy levels of 29.7% and 21.8% respectively.
“At Amazon, we are committed to investing in India for the long term. Our extensive and advanced infrastructure of nine logistics centers, with a storage capacity of 5.5 million cubic feet in the NCR region, helps provide a comfortable and safe shopping experience to customers in the region and across the country.” A spokesperson for Amazon India, without commenting on the specific deal.
ESR purchased the land from Mayar Group.
In the period 2019-2020, 28% of the storage space was leased by e-commerce companies, followed by the manufacturing sector (24%).
Amidst the momentum of Covid-19, the e-commerce sector is expected to gain a greater share of consumption due to the change in purchasing behavior, which is likely to accelerate demand for storage in the future.
Walmart-owned Flipkart acquired 140 acres of land in Manesar, Gurugram to establish the largest fulfillment center in Asia in a deal that was finalized after lockdown restrictions were eased.
Gurugram has become the preferred choice for warehouse developers.
According to a report by Knight Frank India, the land designated for warehouses across the country is estimated at 21,163 acres, which has the potential to add 63% more of the supply to the 307 million sq ft of existing warehouse stock.